Legal Immigrants to Benefit Under New Budget Accord

By ROBERT PEAR

Published: July 30, 1997

President Clinton persuaded Congress to accept many of his proposals to undo the effects of the 1996 welfare law, but Congress rejected some of his requests.

In general, Congress showed great solicitude for legal immigrants who are losing disability benefits and Medicaid under the 1996 law.

Lawmakers have felt growing political pressure to help these noncitizens. Several legal immigrants are reported to have committed suicide after learning that they would lose Federal aid.

Elderly immigrants and refugees who have been in the United States for many years faced the prospect of destitution; some said they would be forced out of nursing homes. And Republican governors prodded Congress to help these immigrants.

Congress was much less willing to restore food stamp benefits. The 1996 law reduced food stamp allotments for many American citizens, and ended food stamps for many legal immigrants who had not become citizens.

In debates over the budget, hardly anyone suggested restoring the Federal guarantee of cash assistance for the nation's poorest children. Mr. Clinton made no effort to restore this entitlement. But Congress did approve his request for $3 billion in the next five years to help welfare recipients move into jobs.

Under this provision of the budget agreement, employers could receive a credit of up to $3,500 for the first $10,000 of wages paid to a welfare recipient in the first year he or she is employed.

The company could receive a credit up to $5,000 for wages paid in the next year, for a maximum credit of $8,500 for each eligible employee.

In last year's Presidential campaign, Mr. Clinton said he wanted to create one million jobs for welfare recipients by the year 2000. White House officials said the tax credits would help achieve that goal.

The budget agreement would restore Supplemental Security Income benefits for legal immigrants who were receiving such aid last August, when Mr. Clinton signed the welfare law. It would also allow immigrants who were here then to receive benefits if they become disabled in the future.

But Congress rejected the President's proposal to pay benefits to legal immigrants who arrive here in the future and later become disabled.

Mr. Clinton sought $4.8 billion over five years to reverse cuts in food stamp benefits made by the 1996 law. Congress provided $1.5 billion.

Under the 1996 law, able-bodied adults with no dependents can receive food stamps for only three months in any 36-month period unless they are working. Congress earmarked $1 billion of the $1.5 billion to help create jobs for this group of people. The remainder of the money would be used to provide food stamps to people who would otherwise suffer severe hardship if they lost their benefits.

Congress rejected Mr. Clinton's proposal to restore a special allowance for food stamp recipients with high housing costs.

The agreement would continue Medicaid for 20,000 to 30,000 children who might otherwise lose it because they were losing disability benefits under the welfare law. The 1996 law established a strict new definition of disability, and many children qualify for Medicaid because they are receiving disability benefits.

Rhoda Schulzinger, a lawyer at the Bazelon Center for Mental Health Law, praised the guarantee of Medicaid coverage, saying: ''It's terrific for youngsters who would otherwise have been facing the loss of both cash benefits and Medicaid. This will insure that those kids can receive the medical help they need, including physical therapy, speech therapy and mental health care. For some families, that's more important than the cash benefits.'' ROBERT PEAR